3 rd Meeting of IPS Support Group Council

3 rd Meeting of IPS Support Group Council of Ministers 2006 IPS Implementation 2007 Roadmap Dept. of Strategy & Donor Coordination December 21, 2006

Purpose of Presentation n n to review IPS strengths and weaknesses in 2006 to propose process improvements for 2007 to present the 2007 key IPS Milestones for 2007 to identify SPC decision points during 2007 2

2006 IPS Accomplishments cont. . n n n establishment and active engagement of SPC and GMC establishment of Working Groups for Strategy, Budget and Integration (GSBI) in each ministry NSDI process launched; all planned sector and crosscutting strategies now underway; on target for 2007 completion first time that a government-approved macroeconomic framework has informed the MTBP process first time that full MTBP methodology used by all ministries first time that public investment was included meaningfully in MTBP process 3

2006 IPS Accomplishments n n n n National Plan for Implementation of SAA approved and being implemented EU units established in Line Ministries Appointment of National IPA Coordinator (NIPAC) IPA priorities finalized within IPS framework IPS Support Group with donors established and met three times Immediate IPS project started and being implemented initial donor commitments (over $6 million) pledged in principle for 3 -year IPS Trust Fund All core IPS components and supporting political and administrative structures are operational. Commitment to and understanding of IPS in ministries is increasing 4

2006 IPS Gaps/Weaknesses n n n MTBP process was 6 weeks late starting Macroeconomic assessment/forecast required additional policy discussion Very little analysis prepared for SPC regarding ministry MTBP ceilings Insufficient training and guidance provided to ministries Ministries did not have enough preparation time In some ministries, SBI WG was not actively engaged in NSDI/MTBP Most ministries submitted MTBP requests late (some very late) Linkage between MTBPs and budgets could have been stronger Public investment decisions remained ad hoc; new process not yet in place European integration was not well reflected in MTBP/budget process Donor coordination procedures not yet developed (DSDC function is not staffed) Level of automation remains low These gaps are not surprising, given newness and scope of IPS, and can all be addressed in 2007 5

2007 Process Improvements n n n Begin process earlier (mid-January) Build more time into Planning Calendar for ministry planning Vigilantly monitor adherence to the Planning Calendar Provide more in-depth training to ministries at beginning of process Activate the IPS Trust Fund in early 2007 Provide better quality analysis to SPC to assist with setting priorities and ministry budget ceilings Build more time into the calendar for SPC decision making (key decisions can require more than 1 meeting) Focus effort on translating SAA commitments into MTBP/budget outputs Introduce new public investment and external assistance management procedures Review of National Plan for Implementation of SAA starts in March IPA 2008 programming starts earlier Operationalize IPSIS (for ministry performance reporting) 6

MTBP n n 2006 was first time all ministries completed MTBP’s Public investment integrated for first time (needs improvement) Delays by central instructions + missed deadlines by ministries problematic MTBP linkage with budget was improved, but needs to be better more time for ministry preparation; better integration with EI/PI 2007 improved linkages with budget process 2008 MTBP based closely on NSDI; full integration with EI and PI all ministries complete satisfactory full MTBPs 2009 7

2007 MTBP/Budget Calendar Month Action January n. Macroeconomic framework presented to SPC February n. Macroeconomic framework, MTBP Preparation Ceilings approved March n. Budget May n. Programme June n. Initial July n. MTBP, October n. SPC November n. Submit December n. Parliament Preparation Instructions – issued n. Programme Policy Review completed Expenditure & Investment Plans completed SPC review of MTBP, MTBP Expenditure ceilings approved n. Complementary Budget Preparation Instructions issued reviews unresolved issues re draft State Budget n. Co. M approves draft State Budget to Parliament approves State Budget 8

Public Investment n n n New process for identifying, approving and monitoring domestic and foreign-financed public investments to be approved in January 2007 New process introduced and tested in 2007, IT system designed Improved links with external assistance strategy in 2008 design and approve new public investment process 2007 test new process; reflect in 2008 -10 MTBP design, test and implemen t IT system for PI 2008 new process reflected in MTBP PI process informs EA Strategy 2009 PI process fully implemented in MTBP; pipeline of projects established 9

2007 Public Investment Calendar Month Action January n. New PIM system approved February n. Potential March n. Ministry May n. Public June n. Public investments reviewed as part of MTBP approval process July n. Public investment component in External Assistance Strategy October n. Approval of public investments in draft State Budget December n. Approval of public investments in State Budget by Parliament major public investments may be identified as part of ceilingsetting process; MTBP PI Ceilings approved Programme Policy Review establishes Public investment priorities investments identified through Ministry Programme Expenditure and Investment Plan 10

NSDI n n Interim NSDI Document to be approved in March 2007; Final in December 2007 All NSDI sector and cross-cutting strategies to be approved by October 2007 NSDI to influence MTBP in 2007; fully reflected in 2008 Emphasis then shifts to implementation and translating high-level goals/objectives into budgeted MTBP outputs approve Interim NSDI Document complete and approve all sector/ cross-cutting strategies 2007 SPC priorities note approve Final NSDI Document reflect NSDI strategies in MTBP focus shifts to implementing strategies through MTBP 2008 2007 MIP/ MMP 2006 Annual Progress Report 2008 MIP/ MMP 2009 SPC priorities note 2007 Annual Progress Report 2009 MIP/ MMP SPC priorities note 2008 Annual Progress Report 2010 MIP/ MMP 11

2007 NSDI Calendar Month Action February n. DSDC submits Priorities Note to SPC (to assist discussion on ministry MTBP Preparation Ceilings) March n. SPC April n. Agree on 2007 Ministry Integrated Plans and Ministry Monitoring Plans June n. DSDC assesses ministry MTBP plans for NSDI linkage July n. Ministries September n 2006 October n. All November n. Agree December n. SPC approves Interim NSDI Document n. Ministries complete Programme Policy Reviews provide input for 2006 Annual Progress Report NSDI Annual Progress Report published final Sector and Cross-Cutting Strategies submitted on 2008 Ministry Integrated Plans, Ministry Monitoring Plans approves Final NSDI Document * Note – individual deadlines assigned for completion of sector/cross-cutting strategies from Jan. to Oct. 12

European Integration n Priorities in 2007 on implementing SAA, establishing ministry EI structures; linking IPA more closely with Government priorities; securing TA; and making progress on IPA decentralization Major effort to be initiated to translate SAA commitments into MTBP/budget Approval of legal framework, establishing structures and preparation of annual calendar for Translation the acquis communautaire in Albanian language convert SAA objectives into MTBP outputs Review of National Plan for implementati on of SAA appoint SPO-s Enforce EI Units complete gaps analysis for CFCU ongoing SAA implementation complete IPA decentralization process 2007 approve IPA 2007 Fiches IPA 2008 Process 2008 IPA 2009 Process 2009 IPA 2010 Process 13

2007 EI Calendar Month Action February n. Start Review of National Plan for Implementation of SAA n. SPC approval of IPA 2007 Project Fiches n. Issue instructions for IPA 2008 n. MTBP instructions on including SAA commitments n. MIPD and Framework Agreement approved by Commission March n. Appoint April n. SPC July n. Approval October n. Approval December n. Complete ministry sector programming officers (SPOs) approval of IPA 2008 projects of MTBP, with SAA commitments n. Annual report on SAA implementation to European Commission of draft state budget, reflecting SAA commitments n. SPC approval of IPA 2008 Project Fiches gap analysis on establishing CFCU 14

External Assistance n n n IPS Trust Fund operational by early 2007 (3 Years) Donor coordination process to be designed in 2007 External Assistance MIS (EAMIS) to be designed in 2007; linked to public investment IT system establish EA unit; design EA process; EA MIS 2007 produce basic EA strategy implement IPS Trust Fund 2008 EAMIS operational produce first full EA strategy 2009 produce second full EA Strategy 15

2007 External Assistance Calendar Month Action January n. IPS Trust Fund approved March n. Format April n. Donor May n. Begin September n. SPC October n. National for External Assistance Strategy approved (GMC) n. Indicators for External Assistance annual report approved (GMC) Roundtable collection of aid harmonization data n. First project approvals under IPS Trust Fund (earlier if feasible) approves external assistance strategy Conference on External Assistance 16

2007 IPS Reporting Calendar Reporting Requirements Mo Qua An nthl rterl nu y y al SA A X X X IPS X X MI Ps X X Bu dg et X X X 17

IPS Ministry Workshop Calendar Month Action January n. Integrated Planning Calendar n. IPS Trust Fund February n. New March n 2008 -10 May n. IPSIS Public Investment Management procedures n MTPB preparation workshop for Line Ministries n. IT managers training for MTBP/Govnet n. ISPIS/EAIMS MTBP, including translating SAA requirements into MTBP outputs n. New Public Investment Management procedures n. IPA 2008 instructions n. Communication and Training Strategy n. External July-Dec. n. Review Assistance Strategy standardized training with TIPA 18

2007 SPC Decision Points Month Decision late Jan. n. New Public Investment Management system; Macroeconomic Forecast early Feb. late Feb. n. Finalize early March late March n. Review April n. List late June n. Review early July n. Follow Sept. n. Review October n. Updated early Dec. mid Dec n. Final Macroeconomic Forecast; review Strategic Priorities; MTBP Funding Choices n(If needed) follow up issues; MTBP Preparation Ceilings; IPA 2007 Project Fiches Interim NSDI document; identify issues requiring follow up n(If needed) follow up issues; approve Interim NSDI document of IPA 2008 projects draft MTBP; identify issues requiring follow up up issues; approve draft MTBP, MTBP Expenditure Ceilings; quarterly IPS report draft external assistance strategy macro forecast; draft State Budget, quarterly IPS report; IPA 2008 Project Fiches NSDI Document; identify issues requiring follow up n. Review follow up issues; approve Final NSDI Document; 2008 Planning Calendar * note approval of sector/cross-cutting strategies to be spread across the above meetings 19

Distributing the Calendar n n The Calendar will be distributed to Ministers at Council of Ministers meeting in January and/or will be sent to all line Ministries along with a PM order All ministries will receive multiple copies To be placed on DSDC web page Updates/news on calendar to be provided on DSDC web page 20

Monitoring the Calendar n Quarterly performance reports to SPC will include an update on progress against the calendar 21